Discuss the normalized asset turnover

Assignment Help Finance Basics

Reference no: EM131491494

Question: Normalized Asset Turnover (Medium)

A firm reported after-tax operating income of$136 million, up from $120 million the year before, on a sales increase from $5, l 06 million to $5,751 million. Net operating assets increased from $2,321 million to $2,614 million. The firm's average asset turnover during the prior three years had been 2.2. Calculate free cash flow for the year and normalized operating income for the year. What do your calculations indicate about the quality of the $136 million in operating income?

Reference no: EM131491494

Questions Cloud

Indicate the return on net operating assets will be higher : Interpretation of Diagnostics (Easy) The following lists a number of ratios against the average for the ratio over the prior three years.

Behavior shaped organizational culture : Describe how the leader's behavior shaped organizational culture in a positive or negative fashion.

Effect of each transaction on assets and liabilities : Describing the effect of each transaction on assets, liabilities, and stockholder's equity.

Evaluating the market and individuals : Identify and briefly describe the four main steps in conducting a compensation survey and the process for analyzing and interpreting survey data. Give examples.

Discuss the normalized asset turnover : A firm reported after-tax operating income of$136 million, up from $120 million the year before, on a sales increase from $5, l 06 million to $5,751 million.

Describe the fraud that had occurred : Describe the fraud that had occurred, and suggest the primary way in which the parties involved could have prevented the fraud in question.

Calculate the profit margin for the year : Change in Asset Turnover and Earnings Quality (Medium) An analyst finds that, for a firm reporting a return on net operating assets of 19 percent.

Determining the scanners and xerox : With the advent of scanners and the universality of the portable document format (PDF), the market for optical copiers is shrinking rapidly.

How has the internet become a tool of democracy : How has the Internet become a tool of democracy? What would result from the old-style type of gatekeeper having that same type of control over the Internet?

User Account

All Pages